lol. not likely. they have about 250 million in cash. they can not really affect the share price much. maybe they have another couple million shares to buy back. they need to maintain a good cash position. the stock was crushed after earnings. crushed. it never should have traded like that. the shorts have to start covering. hence the move up. buyers and mild covering.
it hardly matters about share price at this point. there is no growth, no investor interest. the marketing and product mix is baffling. all this effort. the average age of the car buyer for fiat in the US is approx. 52. think about it. MissCue (sic) is targeting the 52 year old audience for soda. i doubt anyone with an MBA in marketing would quite understand that effort. and maybe this is why jones is so so lost. 52. actual data. it is so frustrating. sampling programs aimed at 52 year olds to drink soda with ACTUAL SUGAR! 52 is average btw. 53 is about median. and they wonder why sales keep falling. what is the average whole foods shopper's attitude toward soda with real sugar? hmmm. tough to figure. this is amazing to watch.
i will have to get my 8 year niece who digs some fufuberry soda to focus on the amazing trunk space and road handling of the new FIAT! i have not been so excited by a marketing campaign since the lobby was redecorated. if we all recall last summer sales only plummeted a lot. imagine this summer when sales only plummet a bit further and we realize the dream of losing less money. there seems a nice tight relationship between walmart buyers of artificially flavored melonboople soda and fiat purchasers. so cooool..........
it would be impressive to exceed the jolie quarter. you will not see the 20% growth i dont think because of the spike. what is a little odd is that there have not been other celebs in the same situation. they missed the real potential bonanza of hiring her to represent the company. she probably would have done it for stock or as a public service. a bit more effective than buying yogurt with a pink ribbon on it.
short. no. i never short stocks. too dangerous a game. i am annoyed at the repeated mistakes here.
i am annoyed at the massive ego which is causing a ton of trouble. $50 million dollars in losses in a few months. the product is good. and chris seems to forget that he didnt invent virgils. and without those brands, this company is smaller than jones. and jones is literally run in a fantasy world where lobby decor changes are issued as press releases. the marketing for reeds is HORRIBLE! horrible. but chris knows everything about everything and every mistake is apparently amusing. this is fine in a private copany. in a public company you should take care or your business. for all the quirky cool vibe he exudes, his salary checks always seem to get smoothly issued. but of course.
you have the potential here for a great growth story. there have been many in the sector because it is not a hard sector to understand and drive business. sorry, simply it is not a complex business. they sell soda, not hip implants. soda, not immunotherapy products. soda, not microchips or phones. the conference calls are blunder after blunder with a stunning self-satisfaction. we are now number two in kombucha sales? with a 1% market share after a year and half. do we need to hear how amazing that is? cuz it isnt. i guarantee you chris does not understand the market reaction to the last two calls. he is baffled, flustered and bewildered. so let's cut marketing expenses, since we are COKE!!!
my read: piper is essentially signalling - with their dopey asco comments- that they are lining up behind the long position. others will begin to shift in large numbers now. there is certainly some downside for mygn with braca competition and failure for myrisk to gain traction, but i do not think as a trader that it is attractive enough to continue the billion dollar bet. i think we are seeing a bottom and a gradual exit. there will be no squeeze though. these guys are professionals and they did a brilliant job of knocking back longs. however, you do not want your money to be the last couple hundred million of shorts on the table.
the cfo is terminated effective immediately. stock plunges.
um, there was no major reason we fired the the cfo. the two of us just disagreed about some stuff, so he resigned and left immediately. everything is fine. same with the last cfo which preceded the earnings miss and slowing growth and marketing cut backs and loss of a major client and contract termination with major bottler and subsequent loss of $50,000,000 in investor value. but, really other than the ongoing losses and slowing growth, everything is awesome. i mean hey, we are the COKE of the natural beverage industry, if you ignore all the other, larger natural beverage companies.
TO THE BARN KIDS!
it does mean something, especially with a company that consistently screws up every quarter. investors were overlooking it while there was growth. now that the growth is slowing, there is no room for error. three cfo's in six months is a big deal for a public company. notice that as chris is firing everyone, the company seems to be struggling more and more. and the problems all seem to relate to chris, not to people being fired.
what a nightmare. however, i think there is strong support in the low $2s. i do not think it will get that bad, but we are not being told everything it would seem.
i never changed position and i dont post to support my trades. i post to discuss and better understand the stock. the chart is the chart. this is not a chart you would short. it is wildly oversold. i do know that extremely hated stocks become loved often. look at appl. everyone HATED it at $475. hated it. now? oh my, stock of the year. mygn will at some point again catch the attention of the street as a powerful play. they are simply the best in the world at what they are doing. they need a marketing department to create a brand that CONSUMERS will know. they have utterly failed at this. utterly failed.
that is not the point. you can have clients and orders, but you need to have enough to justify this market cap. this is a sky-high market cap. if the company was carrying a cap of 3 or 4 million, then ok. it is understandable. but unless you can show order coming in for at least 10 million dollars, how is this valuation not insane?
you dont need wharton. it is freakin tiny micro soda company. they dont make money. what is so hard about a cfo to keep accounts straight and report the cash flows? the cfo isnt going to magically discover a way to make a profit. that is what production, sales and marketing do. they were paying 10% on a loan or some high number. they cfo gets it lower. duh. wharton needed for that?
no, they lost the story. so they have to compete on price. reed does not understand the first thing about marketing. what marketing are they doing consistently anyway? he does not understand merchandising. and what about production? lol. constant problems in production. now however, they are shipping syrup. and it is like he invented syrup/concentrate. and there the story gets really messed up. all natural brewed beverage. from concentrate.
this has gotten frustrating as the smart players bailed when they saw how poorly he handled last quarter. now we are near a 50% sell off as mistake piles on mistake. first sign of disaster was when the first cfo resigned. alarms were sounding. if it gets back under $3, it would be interesting. you can guess that Q2 will be a disaster from the immediate firing of another cfo.
i think the obvious problem at reeds is chris. i know this was proclaimed by others long ago. it is true. he is a good maker of soda. he does not understand much about marketing, finance, PR, growing a company. reed is not ready for prime time. its a clown show now. and that is why the stock has lost 50 million in market cap in a few months. they need a pro to run the company and hire. they need chris to run the soda operations. frankly there have been consistent operational problems, capacity problems, product problems. i was in whole foods this week. all the reeds/virgils products were shifted to the bottom shelf in the soda section. IZZE got eye level. and of course they do not carry the kombucha at all. now the firing of the cfo again is a really poor sign. it would likely scare most buyers away and will certainly deflate any premium. sorry, i no longer see reeds as a buy out in any near term.
i have him on ignore. with half the year almost gone, this appears to be a bleak year for the stock. i could see the shares at the 20 cent level by year end if nothing is done to change direction dramatically. nothing of the sort has been done. the moves made are the slow process of surrendering to the reality of running a money-losing company with shrinking sales and prospects. it is sad to see.
you realize that US quality of care is poor and has been declining relative to other developed countries? why would quality of test matter ultimately if there are cheaper tests? cynical, but honest. no one in the US is really too interested in quality of care. profit yes. perception of quality, yes. actual quality? not so much.
and there is no volume because they lost allllllllllll credibility already. they are going to have actually execute on something with actual results to reverse that. it can be done. but not like they are doing it. i mean the last PR was about decorating the lobby. mom!! mom!! can we put up some pictures for our soda business??